Apple Offering Contract-Free iPhone For $500-$700

Apple has begun selling unsubsidized unlocked iPhone to consumers without the 2 year contract through the Apple Store. The 8GB version of iPhone 3G costs $499, 16GB 3GS will cost $599 and 32GB 3GS will cost $699.

It looks like Apple has finally begun selling unlocked iPhone through the app store. This move may be to counter the flurry of Android based devices hitting the US markets which are also sold unlocked with out any carrier subsidies.

The new development was spotted by Gizmodo through a leaked Apple document which states that customers will not be required to verify their account through AT&T and will be able to use it contract free. The document also states that users may only buy a single unit of iPhone per day.

The document was reportedly updated on March 22nd, however, there is no news yet as to when Apple will actually start selling the unlocked devices, and whether or not it will be available at locations other than the Apple Store.

Google also sells a unlocked version of Nexus One online for about the same price, so this move by Apple might be to counter that and enter the unsubsidized market. Would you buy an unlocked iPhone or would you prefer to buy a unlocked Android based phone instead?